Franklin Electric Enters Into Agreement to Acquire Challenge Pumps, Strengthening Global Mineral Extraction Dewatering Platform
Key Highlights
- ➤Franklin Electric (FELE) to acquire Challenge Pumps for US$181 million cash plus US$14 million contingent consideration
- ➤Challenge Pumps generated US$52 million FY2026 revenue and US$18 million EBITDA
- ➤Challenge Pumps’ EBITDA margin approximately 35%, with over 55% of revenue from aftermarket activity
- ➤Transaction expected to be accretive to Adjusted EPS in 2027
- ➤Deal expected to close in 2026; Franklin Electric projects approximately 1.8x net leverage afterward
Expert Statements
Joe Ruzynski, Chief Executive Officer of Franklin Electric
“This acquisition represents another important step in our strategy to build a broader, more resilient flow control company.”
Joe Ruzynski, Chief Executive Officer of Franklin Electric
“Challenge Pumps has built a leading position in underground mine dewatering through product performance, application expertise, and exceptional customer support. The business adds a highly differentiated technology platform, significant recurring aftermarket revenue, and strong exposure to long-term growth drivers in the mineral extraction market. Combined with Franklin Electric's global footprint and commercial capabilities, we believe there is a meaningful opportunity to accelerate growth while continuing to deliver exceptional value to customers.”
Joe Ruzynski, Chief Executive Officer of Franklin Electric
“Challenge Pumps is a highly complementary addition to Franklin Electric. The company shares our focus on reliability, technical performance, customer service, and long-term partnerships. We are excited to welcome the Challenge team to Franklin Electric and look forward to supporting the company’s next phase of growth.”
Flow control leader adds recurring aftermarket revenue, expands mineral extraction water management capabilities, and enhances exposure to attractive industrial end markets. * Expands Franklin Electric's position in mission-critical mineral extraction and industrial water management applications. * Strengthens Franklin Electric's ability to provide comprehensive mine water-management solutions across the mining lifecycle. * Adds differentiated mine dewatering technology and long-standing relationships with mining companies and contractors. * Increases exposure to recurring aftermarket revenue, with more than 55% of revenue generated from parts and services over the last three years. * Expected to be accretive to Adjusted EPS(1) in 2027. * Attractive financial profile with approximately US$52 Million (A$73 Million) of FY2026 (ending June) revenue and US$18 Million (A$26 Million) of EBITDA(1), representing EBITDA margins(1) of approximately 35%. * Expected to create attractive revenue and cost synergy opportunities by leveraging Franklin Electric’s global commercial, operational and supply-chain capabilities. FORT WAYNE, Ind., Oct. 27, 2026 (GLOBE NEWSWIRE) -- Franklin Electric Co., Inc. (NASDAQ: FELE), a global leader in flow control with a focus in water and energy systems, today announced it has entered into a definitive agreement to acquire Challenge Pumps Holdings Pty Ltd, a leading provider of underground mine dewatering solutions headquartered in Perth, Western Australia.
Get started
Create a free account to read the full story.